CITY OF LOS ANGELES JOINT LABOR-MANAGEMENT BENEFITS COMMITTEE

Transcription

1 CITY OF LOS ANGELES JOINT LABOR-MANAGEMENT BENEFITS COMMITTEE PROPOSED MINUTES SPECIAL MEETING September 7, :00 A.M. CITY HALL, 200 NORTH SPRING STREET, ROOM 1060 Present: Committee Members Regular: Wendy Macy Personnel Department Cheryl Parisi AFSCME, Council 36 Tony Royster General Services Department Chris Hannan Building & Construction Trades Council Richard Llewellyn City Administrative Office Matthew Rudnick Recreation and Parks Paul Bechely Laborers Local 777 Alternates: Marleen Fonseca Engineers and Architects Association Ramon Rubalcava SEIU Local 721 Personnel Department Staff Jody Yoxsimer Assistant General Manager Steven Montagna Chief Personnel Analyst Jenny Yau Senior Management Analyst II Paul Makowski Senior Personnel Analyst I Helen Georgeson Personnel Analyst Daisy Tam Personnel Analyst Russell Escueta Management Assistant Eunice Oh Senior Personnel Analyst I Ted Vasquez Personnel Analyst Office of the City Attorney Curtis Kidder Assistant City Attorney The Segal Group Stephen Murphy Keenan Associates Steven Balentine Laurie LoFranco

2 1. Call to Order Cheryl Parisi called the meeting to order at 9:05 a.m. 2. Public Comments Elise Ruden and Patricia Bilgin made public comments regarding Anthem PPO coverage. 3. Minutes A motion was made by Richard Llewellyn and seconded by Cheryl Parisi to approve the JLMBC minutes of the July 11, 2017 special meeting; the Committee unanimously adopted this motion. A motion was made by Tony Royster and seconded by Matthew Rudnick to approve the JLMBC minutes of the August 10, 2017 special meeting; the Committee unanimously adopted this motion. 4. Benefit Service Provider Presentation: WageWorks Edgar Brock from WageWorks presented the annual service review of the City s taxadvantaged spending accounts services. He began by stating that WageWorks manages the City s tax-advantaged spending accounts consisting of the Healthcare Flexible Spending Account (HCFSA), Dependent Care Reimbursement Account (DCRA), and parking and transit commuter accounts. He then provided a brief summary of WageWorks client base and eligible expenses for which the HCFSA may be used to pay. He noted a short list of the eligible expenses on page 4 of the presentation. Matthew Rudnick asked how the City s enrollment in these tax-advantaged spending accounts compares to other employers similar in size to the City. Mr. Brock stated that he did not currently have that information but that WageWorks is working with the City on promoting participation including holding ongoing webinars and onsite presentations and developing and implementing campaigns. Steven Montagna added that the number of HCFSA participants in 2016 represented about 10% of the City s population. Paul Bechely stated that a lot of groups he works with that are large employers have about a three to five percent participation rate. Mr. Rudnick added that the no rollover feature of the benefit may prevent an employee from enrolling in the benefit. Mr. Brock confirmed that the no-rollover rule sometimes detracts employees from participating in the program. Cheryl Parisi asked if a fixed election amount has to be committed or if changes can be made during the year. Mr. Brock replied that a fixed amount is determined by the employee and then deducted evenly over the course of the year each pay period. He added that changes may only be made due to a qualifying life event under IRS rules allowing an increase, decrease, or cancellation of the account. Mr. Rudnick asked if employees are aware 2

3 that they are required to submit documentation on claims and when they have to submit them when they use the WageWorks debit card. Mr. Brock replied that the WageWorks debit card has an auto-adjudication rate of over 80%. He defined autoadjudication rate as card transactions that will automatically verify the transaction without requiring further documentation. He added that cases where documentation is needed involve a provider not participating in the inventory information approval system (IIAS), a format in which the debit card sends electronic information directly to WageWorks. He continued that IIAS sends an expense in an itemized format that allows WageWorks to approve quickly because it contains the specific information required for WageWorks to verify an expense is eligible. Mr. Brock then transitioned to discussing the Dependent Care Reimbursement Account. He explained that eligible dependent care expenses cover both a dependent minor up to age 13 for day-care as well as an elder dependent for nursing home expenses. He continued that the DCRA participation rate has been traditionally low due to the nature of specific expenses and the limitation on the age of dependents that qualify for reimbursement. He next discussed the commuter benefits (parking and transit) program. He stated that the commuter benefits program is a monthly program and employees can enroll in it at any time during the year. He provided examples of eligible expenses such as a transit debit card for transportation to and from work and parking expenses. Mr. Brock concluded the presentation by providing a brief overview of the WageWorks app for smartphones that allows employees to access their account and submit claims for reimbursement. 5. Committee Report 17-38: 2017 Open Enrollment Communications Campaign Overview for Plan Year 2018 Jenny Yau and Paul Makowski presented this report. Ms. Yau began by providing an overview of the upcoming Open Enrollment campaign for plan year She stated last year s communications efforts focused on introducing employees to the program s new brand and logo, LAwell, to replace the former myflexla and to address major changes to the City s health and vision service providers. She stated that after last year s campaign, staff conducted a limited focus group survey and identified that while the campaign was successful in its goal of introducing employees to the new brand and logo and launch of the new website, there were certain areas that could be improved upon, particularly in streamlining content and summarizing the large quantity of information available to employees to make informed choices. She further stated that this theme resonates during Open Enrollment and also throughout the year and was one of the primary reasons for staff to recommend creation of an Ad-Hoc Communications Subcommittee which was approved by the JLMBC and which met two weeks ago to discuss and advise on some of the components of the upcoming Open Enrollment campaign and future communications strategies. She stated the main theme of this year s campaign is simplicity which is reflected in the communications materials and Open Enrollment webinars and seminars planned in October

4 Paul Makowski next discussed the types of communications materials employees will receive during Open Enrollment. He stated that employees will first receive a four page announcement mailer which will provide highlights of important facts and key dates that employees need to know when electing their benefits for plan year He also stated that Open Enrollment announcement posters will be posted at various City worksites to remind employees of the upcoming Open Enrollment period. Mr. Makowski then discussed the changes that were made to the 2018 enrollment guide. He stated that the limited focus group survey conducted by staff after the last Open Enrollment period showed that a majority of the employees taking the survey preferred a single enrollment guide. Mr. Makowski further explained that staff worked with the JLMBC s communications consultant, Segal to redesign the guide to address its accessibility and navigation by streamlining its content and reducing the guide to one book. He also explained that this year s guide includes a color-coded menu with different tabs to correspond to each benefit option and that the Open Enrollment packaging includes a brightly colored 1-2 page insert that outlines for employees a simple 3-step process on how to enroll and make changes for Mr. Makowski continued by discussing the Open Enrollment webinars and lunchtime seminars schedule. He stated that the webinars will be held weekly on each Wednesday and the lunchtime seminars will be held on-site at locations around the City Hall area on Thursdays. He explained that the lunchtime seminars will allow employees to ask questions and interact directly with the City s benefits service providers and member advocates from Anthem and Kaiser. He also stated that new this year, staff is scheduling a 7 p.m. nighttime session for evening workers that are not able to attend the lunchtime seminars. He further added that the schedule for the webinars and lunchtime seminars will be posted on the City s website. Steven Montagna added that the long term goal of the webinars and lunchtime seminars is for employees to have more personalized engagement with their benefits. Mr. Makowski next discussed the proposed timeline for releasing Open Enrollment communications materials and the method(s) of distribution as outlined on page six of the report. Matthew Rudnick asked if any of the webinars will cover the flexible spending accounts. Mr. Makowski replied that the webinars schedule does not currently include flexible spending accounts, but staff is discussing with WageWorks to have a webinar scheduled prior to the end of the year. Tony Royster asked if there will be any major changes in any of the plans for next year and that if so, a summary of these changes should be easily accessible by employees without having to search for it. Mr. Makowski replied that the Open Enrollment guide includes a two-page benefit overview that quickly summarizes the various benefits options available to employees for easy reference. Marleen Fonseca asked if the first mailer going out in a few weeks will outline the specific benefits that apply to each individual employee. Mr. Makowski replied that employees will receive a Personalized Enrollment Fact Sheet with their Open Enrollment guide that will display the employee s current benefits elections and the new rates they will pay if they do or do not make changes. Ms. Fonseca asked what types of targeted communications will be sent and to which groups. Mr. Makowski replied that an 4

5 example of a targeted communication would be a letter sent to those employees that add dependents to their benefits coverage during Open Enrollment to remind them they must submit verification documentation such as a marriage or birth certificate or their newly added dependent will be dropped from coverage effective January 1, Ms. Fonseca asked for the percentage of employees making active changes. Ms. Yau replied that 25% actively enrolled and 75% passively enrolled during last year s Open Enrollment. Richard Llewellyn asked if the 75% who passively enrolled means they may have not opened anything or looked at any communications. Ms. Yau indicated this was unknown. Mr. Rudnick suggested it may be beneficial to have information ready to address the Anthem rate increases and steps that the JLMBC has taken to mitigate the rate increases. Ms. Fonseca also suggested that there be sessions for Anthem member advocate to handle questions from members regarding rate increases. Mr. Royster stated the purpose of a strategy is to enable employees to make informed decisions. Cheryl Parisi asked if Anthem could describe their direct mail strategy. Andrew Richards of Anthem stated that the plan for Open Enrollment was to mail a Vivity specific communication to all City of LA Anthem members. He continued that the goal is to educate the members about that option and providers in the network, especially for those employees already using Vivity providers. He then explained Anthem s new app, Mobile Health Consumer, which was included in Anthem s offering to the City and is customizable for members. He added that the app provides access to all of Anthem s condition care programs such as diabetes management. Ms. Parisi asked if a communication is being sent to the Full Network members about Vivity. Mr. Richards confirmed that the Vivity specific communication will be sent to all Anthem members including Full Network members. He further stated that there are some members enrolled in the Full Network that are currently using a Vivity provider, so there is a savings opportunity for those members to enroll in Vivity. Ms. Parisi suggested that outreach to educate the Full Network enrollees be done since it is a small group of employees and they may not know about the Vivity option. A motion was made by Tony Royster and seconded by Paul Bechely to receive and file the staff report regarding the October 2017 Open Enrollment communications campaign for Plan Year 2018; the Committee unanimously adopted this motion. 6. Committee Report 17-39: 2017 Benefits Third-Party Administrator Request for Proposal Update Jenny Yau presented this report. She stated that at its April 6 meeting, the JLMBC approved the Request For Proposal (RFP) for benefits Third Party Administrator services for the LAwell Civilian Benefits Program. She continued that the RFP was subsequently released on May 8 with responses due June 30, 2017 and that the City received four proposals, including from incumbent Third-Party Administrator (TPA), Mercer, Empyrean, Morneau Shapell, and Zenith American. Ms. Yau explained that in order for a proposal to be deemed responsive, the proposals must be evaluated for compliance with the City s general contracting requirements. 5

6 Ms. Yau stated that the Personnel Department s Administrative Services Division (ASD) staff reviewed and evaluated the four vendor proposals for compliance with Part B of the RFP requirements and determined that of the four proposals submitted, two proposals, one from Empyrean and the other from Mercer, failed this review. She explained that Empyrean s proposal was submitted late after the proposal submission deadline and was disqualified per the RFP provisions that late proposals will not be considered. She added that Mercer failed because it did not submit and sign required documents per the Part B requirements of the RFP which specifies that failing to comply with the City s general contracting requirements will result in the vendor s proposal being non-responsive. Ms. Yau further stated that staff reviewed the results of the Part B compliance determination with the City Attorney and the City Attorney advised that ASD s determination of the vendor disqualifications is supported by the terms and conditions set forth in the RFP. Ms. Yau continued that given this information, staff is proceeding with review and evaluation of the two qualified proposals from Morneau Shapell and Zenith American and will return to the JLMBC in December or sooner with a further recommendation regarding the vendor selection process. She further stated that staff will continue to regularly update the JLMBC as needed. Matthew Rudnick asked which documents specifically were not submitted and if those unsigned documents could be waived. Steven Montagna replied that the results of the RFP compliance evaluation were reviewed by Curtis Kidder of the City Attorney s Office and it was determined that the rules established in the RFP must be followed. Richard Llewellyn expressed the need for more discussion of a possible transition from a long-time to new provider. Mr. Montagna stated that the City still has all options open including canceling the RFP if it is determined that a new provider is unable to provide the required services. Tony Royster asked if the document that was not signed was because the vendor refused to sign it. Mr. Montagna replied they did not refuse to sign but possibly forgot to sign it. Mr. Llewellyn asked if the RFP had an appeal process and if those documents would be public following the conclusion of the RFP. Ms. Yau explained that there is an appeal process which provides vendors five calendar days from receipt of notification from the City that it has been disqualified to submit an appeal. Cheryl Parisi asked what the basis for submitting an appeal would be. Mr. Kidder replied that the terms and conditions for submitting an appeal are set forth in the RFP. Ms. Parisi asked if the basis for an appeal could be that the vendor believed there was a mistake on staff s part in the review process. Mr. Kidder confirmed that is correct. Mr. Montagna added that there is a pre-submission process available in all RFPs that allow the vendor to check-in and ensure they submit their documents timely and correctly. He added that not all documents can be pre-submitted. A motion was made by Ramon Rubalcava and seconded by Richard Llewellyn to receive and file the staff report providing an update on the benefits Third- Party Administrator Request for Proposal; the Committee unanimously adopted this motion. 6

7 7. Committee Report 17-40: LIVEwell Wellness Program Updates Eunice Oh, Ted Vasquez, Joan Centanno, and Steven Montagna presented this report. Ms. Oh began by updating the Committee about the stakeholder plan which stresses the importance of building a culture of wellness. She added that Ms. Centanno held a training session in mid-july with HR Liaisons and managers to provide the objectives, engagement plan, and their role in building and promoting a culture of wellness. Ms. Centanno next provided an update on the engagement plan. She stated that the wellness staff is collaborating with the CHOOSEwell benefits staff to create a back-toschool themed to encourage prevention and healthy dental and vision behaviors for children. Ms. Centanno also provided a brief summary of the wellness champion survey results. She stated that the wellness champion volunteers represent a vast cross-section of departments, job classes, and unions. Related to the engagement effort, Mr. Montagna added that Councilmember Koretz s office introduced a motion in Council to challenge the other Council offices to participate in the walking program and to compete against one another to determine a winner for the most number of miles traveled on the virtual trails. Mr. Vasquez next provided an update on the wellness education classes and flu shot and screening clinics. He stated the first LIVEwell education class, Healthy Habits, took place at Figueroa Plaza (August 23), Public Works Building (August 24), and City Hall East (August 30). He continued that members were able to pre-register on the custom LIVEwell online scheduler and each class had 50 available seats. He then discussed the webinar education classes. He added that the webinars will be recorded and housed on the Keeping LAwell website for on-demand availability. Tony Royster asked if employees are allowed to watch the webinars during work hours to avoid issues with supervisors. Ms. Centanno replied that standardizing a policy of watching webinars during work hours has not been formalized. Richard Llewellyn stated that at some point, whether or not to allow employees to watch webinars during work hours will have to be formalized. Ms. Centanno replied that the amount of time required to build a culture of wellness and encourage healthy behaviors is still developing. Mr. Montagna added that the goal is for participation in the wellness program to be similar to the participation that occurs with the Deferred Compensation Plan, which has over 43,000 participants. He stated that on an annual basis, the local Deferred Compensation Plan representatives have over 40,000 local participant contacts from current and former participants. Mr. Vasquez concluded his discussion by stating that the final onsite events are the flu shot and biometric screening clinics. He stated that once the clinics conclude, staff will analyze and evaluate the data and determine which clinics will work best for future scheduling. Matthew Rudnick asked if the wellness funds are on track to being spent for the calendar year. Mr. Montagna replied that the Kaiser wellness funding provided for calendar year 2017 is use-it-or-lose-it and the wellness program is on track to spend these funds. 7

8 Mr. Montagna concluded the presentation by providing an update on the Request for Proposal (RFP) for wellness services. He stated that eight proposals were received in response to the RFP and that six of the proposals have passed Part B of the RFP general contracting guidelines compliance review. He further stated that staff will be reporting back to the JLMBC on the results of the RFP evaluation. A motion was made by Paul Bechely and seconded by Richard Llewellyn to receive and file the staff report regarding LIVEwell Wellness Program (LIVEwell) development, updates, and activities; the Committee unanimously adopted this motion. 8. Committee Report 17-41: Projects & Activities Report Paul Makowski presented this report. He began by providing an Anthem network update on Memorial Care. He stated that Anthem and Memorial Care reached a new multiyear contract agreement. He explained that the agreement is retroactive to August 15 and allows members to have uninterrupted access to care. He added that on August 29, Anthem mailed follow-up letters to all parties who received a termination letter (members, physicians, HMO medical groups) regarding having established the new agreement. Mr. Makowski then provided an update on the current contract negotiations between Anthem and Huntington Memorial. He stated that Anthem s current contract with Huntington Memorial runs until October 1, 2017 and that Anthem expects to reach an agreement prior to the contract termination date. Mr. Makowski concluded that the remainder of the monthly report includes staff s regular updates of ongoing and completed projects. A motion was made by Richard Llewellyn and seconded by Tony Royster to receive and file the projects and activities report regarding informational items, projects update and summary, meeting calendar, and staffing summary for August 2017; the Committee unanimously adopted this motion. 7. REQUEST FOR FUTURE AGENDA ITEMS Cheryl Parisi requested that LACERS make a presentation on their Wellness Program to the Committee. 8. NEXT MEETING DATE A meeting was noted for October 5, 2017 at 9:00 a.m. 9. ADJOURNMENT The meeting was adjourned at 10:42 a.m. Minutes prepared by staff member Russell Escueta. 8